By Wendy Van Sickle
Columbus, Ohio, May 21 – HSBC USA Inc. priced $870,000 of 0% autocallable barrier notes with step-up premium due May 6, 2024 linked to the Energy Select Sector SPDR fund, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be called at par plus a call premium if the fund closes at or above its initial level on any annual call observation date. The call premium is 16.5% per year.
If the notes are not called and the fund finishes at or above its 80% barrier level, the payout will be par. Otherwise, investors will be fully exposed to the decline of the fund.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Autocallable barrier notes with step-up premium
|
| Underlying fund: | Energy Select Sector SPDR fund
|
| Amount: | $870,000
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| Maturity: | May 6, 2024
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| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | If not called and fund finishes at or above its 65% barrier level, par; otherwise, full exposure to losses
|
| Call: | At par plus a call premium of 16.5% per year if fund closes at or above its initial level on any annual call date
|
| Initial fund level: | $49.39
|
| Barrier level: | 80% of initial level
|
| Pricing date: | April 30
|
| Settlement date: | May 6
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 2.25%
|
| Cusip: | 40438C6P1
|
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